- USD/CHF is displaying back-and-forth moves around 0.9450 after sheer volatility.
- A slowdown in growth rate and labor demand, and a decline in October inflation support Fed’s less-hawkish commentary.
- The US NFP is expected to display weak job numbers considering cues from US ADP Employment.
The USD/CHF pair turned sideways around 0.9450 in the early Asian session. Federal Reserve (Fed)-inspired massacre in the asset was followed by a casual recovery from around 0.9430, and the asset has turned sideways now to ease sky-rocketing volatility.
The less-hawkish commentary from the Fed chair sent the US Dollar Index (DXY) on a downside swing to near 105.80. The USD Index has also shown a mild recovery to near 106.00, however, the downside bias has been cemented. A stellar run in S&P500 portrays a cheerful market mood.
Meanwhile, the US Treasury yields have witnessed a bloodbath as investors poured liquidity into US Treasury bonds. The 10-year US Treasury yields have dropped to 3.60%.
The decision to slow down the current pace of the interest rate hike by the Fed is backed by a deceleration in the employment generation process, a slowdown in growth rate, and a surprise decline in October’s inflation, which have put the Fed in a position where rate hike pace could be eased. The foremost agenda of the Fed is to bring price stability but it is not appropriate to ‘Crash the economy and clean it afterwards, cited by Fed Chair.
For further guidance, investors are shifting their focus toward the United States Nonfarm Payrolls (NFP) data, which will release on Friday. The official employment report is expected to display a weaker number considering cues from US Automatic Data Processing (ADP) Employment data, showing fresh addition of 127K jobs in November.
On the Swiss franc front, investors keep an eye on Consumer Price Index (CPI) data. The monthly annual CPI figures are seen unchanged at 0.1% and 3.0%, respectively. The Swiss National Bank (SNB) Chairman Thomas J. Jordan is still in favor of an expansionary policy to keep up the economic prospects.
|Today last price||0.944|
|Today Daily Change||-0.0100|
|Today Daily Change %||-1.05|
|Today daily open||0.954|
|Previous Daily High||0.9546|
|Previous Daily Low||0.946|
|Previous Weekly High||0.9598|
|Previous Weekly Low||0.9388|
|Previous Monthly High||1.0148|
|Previous Monthly Low||0.9781|
|Daily Fibonacci 38.2%||0.9513|
|Daily Fibonacci 61.8%||0.9493|
|Daily Pivot Point S1||0.9485|
|Daily Pivot Point S2||0.943|
|Daily Pivot Point S3||0.94|
|Daily Pivot Point R1||0.957|
|Daily Pivot Point R2||0.9601|
|Daily Pivot Point R3||0.9656|
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.